2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat

3. Bitcoin S&P Pattern - Nadeem_Walayat

4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat

4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison

5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat

7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat

8.The Bond Trade and Interest Rates - Nadeem_Walayat

9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride

10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills

Last 7 days

It's Five Nights at Freddy's Again! - 12th Jan 25

Squid Game Stock Market 2025 - 5th Jan 25

Stock Market Bubble Drivers, Crypto Exit Strategy During Musk Presidency - 27th Dec 24

Gold Stocks’ Remain Exceptionally Weak Even as Stocks Rise - 27th Dec 24

Gold’s Remarkable Year - 27th Dec 24

Stock Market Rip the Face Off the Bears Rally! - 22nd Dec 24

STOP LOSSES - 22nd Dec 24

Fed Tests Gold Price Upleg - 22nd Dec 24

Stock Market Sentiment Speaks: Why Do We Rely On News - 22nd Dec 24

Never Buy an IPO - 22nd Dec 24

THEY DON'T RING THE BELL AT THE CRPTO MARKET TOP! - 20th Dec 24

CEREBUS IPO NVIDIA KILLER? - 18th Dec 24

Nvidia Stock 5X to 30X - 18th Dec 24

LRCX Stock Split - 18th Dec 24

Stock Market Expected Trend Forecast - 18th Dec 24

Silver’s Evolving Market: Bright Prospects and Lingering Challenges - 18th Dec 24

Extreme Levels of Work-for-Gold Ratio - 18th Dec 24

Tesla $460, Bitcoin $107k, S&P 6080 - The Pump Continues! - 16th Dec 24

Stock Market Risk to the Upside! S&P 7000 Forecast 2025 - 15th Dec 24

Stock Market 2025 Mid Decade Year - 15th Dec 24

Sheffield Christmas Market 2024 Is a Building Site - 15th Dec 24

Got Copper or Gold Miners? Watch Out - 15th Dec 24

Republican vs Democrat Presidents and the Stock Market - 13th Dec 24

Stock Market Up 8 Out of First 9 months - 13th Dec 24

What Does a Strong Sept Mean for the Stock Market? - 13th Dec 24

Is Trump the Most Pro-Stock Market President Ever? - 13th Dec 24

Interest Rates, Unemployment and the SPX - 13th Dec 24

Fed Balance Sheet Continues To Decline - 13th Dec 24

Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24

Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24

Gold Price Monster Upleg Lives - 8th Dec 24

Market Oracle FREE Newsletter

Subscribe Now

Stock Market Investor “Buy the Dip” Mentality is Still Strong, Which is Bullish for Stocks

Stock-Markets / Stock Markets 2018 Jul 18, 2018 - 03:15 PM GMT

By: Troy_Bombardia

The stock market’s “buy the dip” mentality is very strong right now.

The S&P 500’s pullbacks are becoming smaller and smaller, while the S&P 500 has started to break out.

Netflix tanked -13% yesterday on its earnings report after the market closed, but has clawed its way back to -5%.

As a result, the NASDAQ gapped down more than -0.6%, but reversed and closed at a new all-time high.

Here’s what happens next to the NASDAQ (historically) when the NASDAQ opens down at least -0.6% and closes at a 1 year high (i.e. reverses due to “buy the dip”)

Here’s what happens next to the S&P 500 (historically) when the NASDAQ opens down at least -0.6% and closes at a 1 year high.

Click here to download the data

Conclusion

As you can see, the stock market usually continues to go up when its “buy the dip” mentality is strong.

This is a short term (2 weeks forward) bullish sign and medium-long term bullish sign. This study suggests that the S&P 500 will probably get close to making new all-time highs within the next few weeks.

Click here for more market studies.

By Troy Bombardia

BullMarkets.co

I’m Troy Bombardia, the author behind BullMarkets.co. I used to run a hedge fund, but closed it due to a major health scare. I am now enjoying life and simply investing/trading my own account. I focus on long term performance and ignore short term performance.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Troy_Bombardia Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.